Kingswell Dr, Woodbridge, VA 22193
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $230,000. The borrower is putting up about $60K of their own cash plus fronting the construction costs. The property only needs about $10K in work to spruce up.
|Loan Amount:||$200,000 1st Mortgage|
|Value of Subject Property:||$315,000|
|Loan to Value:||64%|
|Term requested:||9 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a good area of Prince William County Virginia. The borrower will be contributing about $60K+ into this deal plus fronting construction money.
The cons are:
The borrower’s exit strategy of selling could take longer than expected in this market.